- Spirit Technology Solutions (ST1) has delivered a sturdy profit and record revenue over the six months to the end of December 2020
- While Spirit initially made a name for itself as a telco and internet provider, the company changed its name in October 2020 to reflect its expanded services
- With the company internet, cybersecurity, cloud services, managed IT, and more, Spirit was able to increase revenue to $44 million over the half-year — 253 higher than the same period the year before
- This revenue boost underpinned a $508,000 net profit for the half-year compared to a $740,000 loss over the prior corresponding period
- At the end of December, Spirit had $23.3 million in cash and debt, with the integration of some important acquisitions tracking along ahead of schedule
- Shares in ST1 closed 1.4 per cent higher this afternoon at 39 cents per share
Spirit Technology Solutions (ST1) has delivered a sturdy profit and record revenue over the half-year wherein it rebranded to a fully-fledged IT and Telco business.
While Spirit made a name for itself as a telco and internet provider, a string of acquisitions over 2019 and 2020 saw the company majorly expand its product and service offering and subsequently change its name to reflect the growing business.
With Spirit's services covering internet, internet security, cloud services, mobile, managed IT, and more, the company made $44 million in revenue and other income for the six months to the end of December 2020 — an increase of 253 per cent on the same half-year in 2019.
This revenue boost underpinned a $508,000 profit for the half-year. For reference, Spirit posted a $740,000 loss over the same time period in 2019.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) was $3.4 million for the first half of the 2021 financial year, which is 320 per cent higher than the prior corresponding period.
Spirit Managing Director Sol Lukatsky said the "excellent" half-yearly results validate the strength of the company's business strategy.
"It is particularly pleasing to deliver a profitable H121 in a period of investment in scaling up the business, building a national brand and integrating multiple acquisitions," Sol said.
"We've been able to adeptly respond to the changing needs of business, as their IT&T needs become increasingly complex by delivering a comprehensive bundled offering across cloud, voice, data, managed services and cybersecurity with a strong customer focus," he said.
"We have further growth in our sights as we launch new products, continue to expand our reseller network and realise the benefits of the investment made over the past year and during 2021."
Importantly, Spirit's recurring revenue for the half-year came in 99 per cent higher than the prior corresponding period.
At the end of December, Spirit had $23.3 million in cash and available debt, with the integration of some important acquisitions tracking along ahead of schedule.
Shares in ST1 closed 1.3 per cent higher this afternoon at 39 cents per share. The company has a $230.7 million market cap.